Marimekko, the renowned Finnish design house known for its vibrant and distinctive patterns, faced a minor setback in the first quarter of this year. However, the company is undeterred and remains committed to expanding its presence in Asia, citing it as a crucial factor for future growth.
The financial performance of Marimekko in Q1 showed a 2% decrease in sales compared to the previous year. This was primarily due to a decline in Finnish wholesale and licensing income in the EMEA region. Nevertheless, the company witnessed growth in retail turnover within Finland and a rise in international wholesale, which helped offset the losses incurred.
Despite this dip, Marimekko maintains an optimistic outlook for its net sales throughout the year, projecting growth both domestically and internationally. The operating profit for the quarter decreased to €3.8 million, a decrease from €6.6 million in the previous year. This decline was largely attributed to lower licensing income and an increase in fixed costs.
Despite these challenges, President and CEO Tiina Alahuhta-Kasko highlighted the brand’s enduring appeal and positive developments in domestic retail sales, which saw a 12% increase. Furthermore, Marimekko experienced a 9% surge in global omnichannel retail sales and an 8% increase in international wholesale sales.
To fuel its future growth, Marimekko has implemented a new strategic period, with a strong emphasis on expanding its business and presence in international markets. Asia has been pinpointed as the most vital geographical area for international growth. In line with this strategy, the company has already made significant progress in the region. For instance, Marimekko successfully opened two new stores in Beijing during Q1 and expanded its e-commerce activities in China. Additionally, the brand established pop-up stores in Japan and Taiwan and organized a fashion show in Thailand. These endeavors contributed to a 16% increase in Q1 sales within the Asia-Pacific region.
Marimekko’s efforts in Asia have played a crucial role in mitigating the impacts of challenges faced during the comparison period, when wholesale deliveries from Q4 2021 were shifted to Q1 2022. With its strong brand appeal and a focused strategy on international growth, Marimekko exudes confidence in its ability to navigate through uncertain times and capitalize on new opportunities within the Asian market.
Useful links:
– Marimekko Official Website
– Marimekko Store Locator
